PSTL Postal Realty Trust Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): September 26, 2024

 

POSTAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

 

Maryland		001-38903		83-2586114
(State or other jurisdiction of Incorporation or organization)		Commission File Number		(I.R.S. Employer Identification No.)

 

75 Columbia Avenue

Cedarhurst, NY 11516

(Address of principal executive offices and zip code)

 

(516) 295-7820

(Registrant’s telephone number)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-I2 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.I4d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share		PSTL		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 8.01. Other Events

 

On September 26, 2024, Postal Realty Trust, Inc. (the “Company”) issued a press release announcing an update on its ongoing lease negotiations with the United States Postal Service. A copy of the press release is attached hereto as Exhibit 99.1 and the text thereof is incorporated by reference into this Item 8.01.

 

Item 9.01 -Financial Statements and Exhibits

 

(d) The following exhibits are being filed herewith:

 

Exhibit No.		Description
99.1		Press Release of Postal Realty Trust, Inc., dated September 26, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: September 26, 2024

 

	POSTAL REALTY TRUST, INC.
	By:	/s/ Jeremy Garber
		Name: Jeremy Garber
		Title: President and Treasurer

 

 

2

Exhibit 99.1

 

 

Postal Realty Trust, Inc. Provides Leasing Update

 

CEDARHURST, NEW YORK, September 26, 2024 (GLOBE NEWSWIRE) — Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 1,950 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, announced today an update on its ongoing lease negotiations with the USPS.

 

Leasing Update

 

●

Agreed to new rents on all expired 2023 leases and the majority of the expired and scheduled to expire 2024 leases.

 

●

As of September 25, 2024, the Company had received 162 fully executed new leases from the USPS, representing 2023 and 2024 leases that have expired and are scheduled to expire. The 2023 leases received represent nearly 57% of the aggregate 2023 expired rent and the 2024 leases received represent 51% of the aggregate 2024 expired and scheduled to expire rent. This excludes leases subject to renewal options and leases negotiated by prior ownership.

 

●

These executed leases contained 3% annual rent escalations resulting in 19% of the owned portfolio being subject to annual rent escalations.

 

●

The 2023 and 2024 leases contained a mix of five and ten-year lease terms.

 

●

Received a total net lump sum catch-up payment of approximately $1.2 million from the USPS related to the new 2023 and 2024 leases executed during the third quarter, bringing the total amount received to $1.5 million. Net lump sum catch-up payments represent the difference between the prior lease rent and the agreed upon new lease rent and are paid upon the execution of new leases that were previously expired.

 

“Our team has been working diligently with the Postal Service to modify our historical leasing process to enable more efficient lease negotiations and timely lease execution. We are pleased with the results of the 2023 and 2024 lease negotiations. With continued annual rent escalations and the introduction of ten years of duration on a subset of leases, we believe we will be able to enhance our internal growth story and maximize long-term shareholder value. Discussions are in progress with the Postal Service on the 2025 lease expirations with the mutual goal of executing new leases prior to lease expiration. We look forward to providing further details in our next quarterly update”, stated Andrew Spodek, Chief Executive Officer.

 

2023 Leases

 

As of September 25, 2024, the Company had received 79 fully executed new leases from the USPS representing nearly 57% of the aggregate 2023 expired rent and all were subject to 3% annual rent escalations. As of September 25, 2024, the Company received a total net lump sum catch-up payment of approximately $970,000 from the USPS related to the 2023 leases executed during the third quarter 2024, bringing the total net lump sum catch-up payment received from the 2023 leases to approximately $1.3 million.

 

2024 Leases

 

As of September 25, 2024, the Company had received 83 fully executed new leases from the USPS representing 51% of the aggregate 2024 expired and scheduled to expire rent and all were subject to 3% annual rent escalations. As of September 25, 2024, the Company received a total net lump sum catch-up payment of approximately $220,000 from the USPS related to the 2024 leases executed during the third quarter 2024 (no net lump sum catch-up payments related to the 2024 leases were received prior to the third quarter 2024).

 

 

 

Forward-Looking and Cautionary Statements

 

This press release contains “forward-looking statements.” Forward-looking statements include statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including, among others, statements regarding the Company’s anticipated growth and ability to obtain financing and close on pending transactions on the terms or timing it expects, if at all, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS, competitive, financial market and regulatory conditions, disruption in market, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

About Postal Realty Trust, Inc.

 

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,950 properties leased primarily to the USPS. More information is available at postalrealtytrust.com.

 

Contact:

 

Investor Relations and Media Relations

Email: Investorrelations@postalrealtytrust.com

Phone: (516) 232-8900

 

 

 

v3.24.3

Cover	Sep. 26, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 26, 2024
Entity File Number	001-38903
Entity Registrant Name	POSTAL REALTY TRUST, INC.
Entity Central Index Key	0001759774
Entity Tax Identification Number	83-2586114
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	75 Columbia Avenue
Entity Address, City or Town	Cedarhurst
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11516
City Area Code	516
Local Phone Number	295-7820
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	PSTL
Security Exchange Name	NYSE
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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